I noticed that QQQ is a full 25% above it's MA and a full 5% above it's EMA. The RSI on QQQ is also above to take it's turn. These things combined in the past year almost always lead to a fall back to the EMA and being 25% above the 200 day is something that really peaks my interest as that's a multi-year record. I've been slowly getting my short positions into SPX, but seeing all this it seems to me that the time may finally be here to short the beast, QQQ. Thoughts?
Look to short the opening gap up on Monday, get into August contracts, Julys only got a week left. Puts getting cheap now, so buy time!
My strat: open a long put near the money on gaps up, sell the dailies when the gap closes just in case it gaps again Tues.
Selling Friday's weekly on a Monday to create a bear spread is not optimal, so write a $15 bear spread (buy Aug 265P, sell Jul 250P).
If it rolls over Tues or Weds you can roll the short legs down and further out, and uncover part of position rolling 2/3 or 1/2.
I always hedge when I'm top or bottom fishing, you just never know wth the last pip will be.
GLTA!
My strat: open a long put near the money on gaps up, sell the dailies when the gap closes just in case it gaps again Tues.
Selling Friday's weekly on a Monday to create a bear spread is not optimal, so write a $15 bear spread (buy Aug 265P, sell Jul 250P).
If it rolls over Tues or Weds you can roll the short legs down and further out, and uncover part of position rolling 2/3 or 1/2.
I always hedge when I'm top or bottom fishing, you just never know wth the last pip will be.
GLTA!